International Journal of Management and Enterprise Development (9 papers in press)
Motivational and success factors: through the lens of women entrepreneurship
by Sucheta Agarwal, Vivek Agrawal, Anand Mohan Agrawal
Abstract: With the development of society, women entrepreneurs turn out to be more prominent. Their significant contribution in economy makes them recognized at national and international level. The initiation, growth and success of women owned enterprises are determined by the push and pull factors of motivation. This study emphasized on the role of motivational factors in the entrepreneurial success of women in Indian context. A structured questionnaire was used to collect data through personal administration of the questionnaire among women entrepreneurs of different regions of Uttar Pradesh, the biggest state of India. The collected data was analyzed using exploratory factor analysis (EFA) and the factors related to motivation and successes of the entrepreneurship was explored and according to that, five hypothesis were framed. The findings focussed on the constructive relationship between motivational and success factors with the help of regression coefficients. The invigorating of women enterprises is necessary for maintaining the gender justice and equality around the world.
Keywords: exploratory factor analysis; India; motivation; multiple regression approach; success; women entrepreneurs.
Developing Model for Integrating Sustainability into Enterprise Operations
by Kongkiti Phusavat, Bordin Rassameethes, Dusan Lesjak, Chavatip Chindavijak
Abstract: The study aims to develop a model which helps integrate sustainability into business processes of a firm. The earlier study from Thailands Management System Certification Institute or MASCI with its international partners shows that there are nine elements (anticipation, concern, leadership, communication, capability, planning, execution, performance, and report) when integrating sustainability into enterprise-wide operations. Model development is based on extending this study. It is viewed that sustainability is one of the key strategies to advance beyond the Original Equipment Manufacturer status for the manufacturing sector in the country. MASCI engages with 504 organizations which have been extensively trained or certified with the international standards on quality and environment as well as applications such as Global Reporting Initiative and Dow Jones Sustainability Index. The model shows the interrelationships among the nine elements deemed as critical for integrating sustainability into enterprise operations. It highlights the importance of the leadership, planning, and performance as the main elements for integrating sustainability into enterprise operations. The comparison with the sugar industrys development supports the model and its highlight on these three components.
Keywords: Enterprise Development; Model; Sustainable Development; Sustainability; Enterprise-Wide Operations.
Special Issue on: Firm Governance and Risk Management
CO-MOVEMENTS IN VOLATILITY OF DEPENDENCY BETWEEN US DOLLAR AND EURO: ANALYZING BY CONDITIONAL HETEROSCEDASTICITY MODELS
by Lamia Jamel, Sihem Mansour
Abstract: In this study, we use for the first time the conditional heteroscedasticity specifications (GARCH, AGARCH, APARCH, Asymmetry MEM, MEM, EGARCH, GJR GARCH, and GAS-GARCH Student t models) to examine the volatility of exchange rate returns between the US Dollar and the Euro. So, the conditional heteroscedasticity models are used to capture the time-varying parameter by the function of the likelihood function. Methodologically, we utilize a daily data of the exchange rate between the US Dollar and the Euro during the period of study from January 02, 2000 to June 30, 2015. From the empirical findings, we remark that the exchange rate returns between the US Dollar and the Euro show a highly volatility and validate the presence of a greatly time-varying variance in the exchange rate time series obtained after the estimation of the conditional heteroscedasticity models. Besides, we can remark that the conditional heteroscedasticity volatility prediction attains their maximum after the financial crisis of 2008, especially on 2009. Our empirical findings indicate the existence of highly dependency between the US Dollar and the Euro which prove the economic and financial integration between the United States (US) and the Euro zone.
Keywords: US Dollar; Euro; Volatility; Exchange rate; conditional heteroscedasticity models.
The Risk-based Management Control System: a stakeholders perspective to design Management Control Systems
by MOHAMED ADIB
Abstract: Due to the proliferation of international crises and the increasing pace of changes in the global economic and financial systems, companies are facing diverse and challenging risks. Hence, the need to consider the notion of risk in management control is legitimate, and more specifically, the risks that stakeholders present regarding strategic objectives.
Integrating this risk into management control systems will allow a better implementation of the strategy, since the latter is intended to be carried out by the organization in an environment, in interaction with stakeholders who can affect or be affected by this strategy. This study develops a conceptual model of management control considering the risk of stakeholders. The main contribution of this work is that strategic responds and performance measurement will be based on couples of Key Performance Indicators/Key Risk Indicators to accurately analyse the performance, as well as the understanding of the various opportunities and threats with a view to continuous development.
Keywords: Management Control Systems; stakeholders’ perspective; risk; Risk-based Management Control System; Strategy implementation and control; KPI; KRI.
Board Characteristics, IFRS Adoption and Voluntary Disclosure: Evidence from Management Forecasts Accuracy in France
by Khawla Hlel, Ines Kahloul Nafti
Abstract: In this article, we examine whether the IFRS adoption and the strong corporate board contribute effectively to reduce the information asymmetry by enhancing the quality of voluntary disclosure in the case of French IPOs. Our measure of disclosure quality is denoted by the absolute forecast error as a proxy for management earnings forecasts accuracy. We find evidence that the adoption of IFRS gives a credible signal of higher disclosure quality and lower information asymmetry through the improvement of the management earnings forecasts accuracy. Also, we find that the independent and larger boards do play an important role in promoting corporate transparency by conveying more accurate earnings forecasts. These findings suggest that future shareholders can benefit from receiving better forecasts. Accurate management forecasts can allow them to identify the companies they want to invest in, and to reduce the costs of adverse selection that they have to face.
Keywords: Board characteristics; IFRS adoption; Voluntary disclosure; Management forecasts;Forecasts accuracy;IPO Initial Public Offerings; France.
To what extent the global financial crisis deteriorated loan quality of US commercial banks?
by Ameni Tarchouna, Bilel Jarraya, Abdelfettah Bouri
Abstract: This paper aims to study the extent to which the global financial crisis worsened the loan quality of US commercial banks. That is, we specify the factors behind non-performing loans with a focus on the effect of the crisis as an additional determinant. Thus, we use dynamic panel GMM estimation on three size groups of 184 US commercial banks over 2000-2013 period. Our findings show that bad loans in the three subsamples are differently affected by the bank-specific and macroeconomic variables. Moreover, our results indicate that the crisis factor has a positive and statistically significant effect on non-performing loans of US banks with small ones being mostly influenced. This finding can be clarified by the policies of financial intervention that favored larger banks so as to save the US financial system. Also, the diversification of large banks enables them to overcome the contagious crisis effect.
Keywords: loan quality; Global Financial Crisis; Dynamic panel GMM estimation; US commercial banks.
Agency conflicts in French SMEs: Are banks shareholders still influent?
by Salma Mokdadi, Kamel Naoui
Abstract: The aim of our paper is to study the importance of the banks role in corporate governance. For this purpose, we investigate motivations behind banks shareholding of French SMEs and their impact on firm performance. A sample of 108 SMEs listed on the French Mid&Small stock market over the period 20082014 is empirically tested using Tobit and GLS methods. Estimation results suggest that bank equity-holding seems to play a role in the resolution of Type I and Type II agency conflicts. Similarly, we show that there is a concave nonlinear relationship between SME performance and bank ownership.
Keywords: Corporate governance; Ownership structure; Bank ownership; Performance; French SME’s.
POLITICAL CONNECTIONS, COLLATERAL FAVORS AND DEBT ACCESS: SOME TUNISIAN EVIDENCE
by Fayrouz Bencheikh, Neila Boulila Taktak
Abstract: The purpose of the paper is to study the effect of political connections on collateralization and debt access. The study is carried out on a simple of Tunisian firms on the period 2007-2012. In the first step, we have taken into consideration an aggregate measure of collateral which is fixed assets. Results show that only long term debt can be covered by fixed assets owned by connected firms. Then, in a second step, we have been studying the collateral liquidity through three components: lands, buildings and machineries and equipment. The major finding is that politically connected firms were able to gain access to debt without sufficient liquid collaterals.
Keywords: debt; political connections; collateral liquidity.
Does the Usage of Financial Derivatives Decrease the Systemic Risk in the GCC Banks? An Empirical Study
by Nesrine Bendima, Mohamed Benbouziane, Ali Bendob, Naima Bentouir
Abstract: In the financial markets, the financial institutions and banks use the financial derivatives for hedging against systemic risks, for speculation or/and arbitrage. This study aims to investigate mainly whether the use of financial derivatives makes banks reducing their systemic risks. Using the data of 19 commercial banks from GCC during the period from 2000 to 2013, the main results reveal that the use of financial derivatives decrease banks systemic risks, while the performance indexes effect is not obvious, it differs between a negative and a positive effect. However, banks use derivatives with the increase in off-balance sheet to hedge their risks. Finally, the rise of GDP does not give a safety feeling to managers of banks, so they tend to use derivatives to hedge, in addition, they use them also with the increase in inflation and unemployment rates for hedging purposes.
Keywords: Financial Derivatives; systematic risks; banks performance; panel data; hedging; GCC banks.